Abstract
L3Harris Technologies, Inc. will report quarterly results on October 29, 2026, Pre-Mkt; the market is looking for mid-single-digit revenue growth with double-digit EPS expansion, while investors weigh execution on major programs and leadership transition dynamics.
Market Forecast
Current consensus points to revenue of 5.91 billion US dollars for the quarter, up 7.14% year over year; adjusted EPS is projected at 2.94, up 14.28% year over year; and EBIT is estimated at 929.50 million US dollars, up 10.81% year over year. The company did not provide quantified margin guidance for the quarter in its last communication, but last quarter’s gross profit margin of 25.54% and net profit margin of 10.20% provide the baseline for comparison.
Main business momentum remains centered on Space and Mission Systems and Communication and Spectrum Dominance, supported by continued deliveries and program milestones that are expected to sustain revenue growth and stable margins. Missile Solutions stands out as the most promising segment after a series of multi-year propulsion and munitions awards; it generated 1.05 billion US dollars last quarter, and while segment-level year-over-year growth was not disclosed, the booked awards and capacity expansions position it for further expansion.
Last Quarter Review
L3Harris Technologies, Inc. delivered revenue of 5.88 billion US dollars with a gross profit margin of 25.54%, GAAP net profit attributable to the parent company of 600.00 million US dollars, a net profit margin of 10.20%, and adjusted EPS of 3.13, up 12.59% year over year, while revenue increased 8.39% year over year.
A key highlight was profitability resilience: net profit rose 17.19% quarter on quarter, and adjusted EPS exceeded the prior consensus, demonstrating improved execution and cost control. By segment, Space and Mission Systems contributed 2.97 billion US dollars, Communication and Spectrum Dominance 1.94 billion US dollars, and Missile Solutions 1.05 billion US dollars; segment-level year-over-year growth was not disclosed.
Current Quarter Outlook
Space and Mission Systems
Space and Mission Systems is the largest revenue contributor, with last quarter’s 2.97 billion US dollars reflecting the breadth of program activity. For the current quarter, execution centers on meeting near-term engineering and manufacturing milestones across major programs such as advanced jamming payloads and space-related communications. Recent awards and contract modifications—such as an 876.40 million US dollars program advancement and a 461.90 million US dollars satellite communications award—support a steady run-rate of deliveries and development revenue through the quarter.
On margins, the prior-quarter gross profit margin provides a reference point, and consensus implies that any variability will likely hinge on program mix and milestone timing rather than an across-the-board cost reset. The segment’s ability to convert funded awards to revenue without schedule friction is the single most important determinant of quarter-to-quarter earnings within this portfolio. Given the installed base of programs and recent wins, the path to the forecasted 7.14% company-level revenue growth is most consistent with stable segment throughput and continued on-time performance.
From a cash-generation perspective, the mix of development and early production work within this segment often drives working capital swings; the market will look for signals on billing milestones achieved in the quarter, as these can anchor free cash flow cadence even if revenue lands within a tight range around consensus. The read-across for investors is straightforward: stable execution on committed schedules, no significant cost growth events, and incremental hardware shipments all contribute to the double-digit EPS growth embedded in expectations.
Missile Solutions
Missile Solutions has become a focal point for growth after a series of multi-year propulsion awards and capacity expansions. The business booked a seven-year, 4.70 billion US dollars order for PAC-3 MSE propulsion systems and a separate multi-year award valued at more than 6.00 billion US dollars for THAAD propulsion, while also signing a multi-year agreement to build critical missile components. These awards underpin multi-year revenue visibility and provide a clear framework for scaling manufacturing output, which can enhance operating leverage when yields stabilize and learning curves progress.
In the near term, the quarter’s revenue looks set to benefit from early ramp activities, tooling, and facility investments that support the longer-cycle production commitments. Segment revenue of 1.05 billion US dollars last quarter establishes a high base, and although specific year-over-year growth for the segment was not disclosed, the incremental awards and capacity actions suggest constructive momentum for the quarter and subsequent periods. The reported collaboration to improve affordable mass munitions production adds a cost-curve improvement vector, potentially supporting margins as production scales.
The key operational swing factors this quarter are material availability and throughput stability in propulsion lines, given that even minor disruptions can affect short-term deliveries and, by extension, margin capture. Management’s prioritization of capacity expansions and process improvements is aligned with the intake of large multi-year contracts; to the extent that these initiatives translate into consistent on-time deliveries and stable yields, the segment should contribute positively to the company-level EBIT estimate of 929.50 million US dollars implied by consensus.
Stock Price Drivers This Quarter
The stock’s near-term performance is most sensitive to three quantifiable elements: revenue conversion against funded awards, margin consistency relative to last quarter’s 25.54% gross margin, and evidence that adjusted EPS remains on track to the consensus 2.94 with a 14.28% year-over-year increase. Any deviation in milestone timing, particularly for complex development programs, could shift revenue recognition within the quarter, making management’s commentary on schedule adherence a key qualitative indicator for the remainder of the year.
Leadership transition has introduced an additional lens for investors. The market is parsing signals for continuity in execution and cost discipline under the new chief executive. Commentary from observers suggests confidence that operational cadence will be maintained, and any incremental disclosures on capital allocation or structural actions could modulate sentiment. The upcoming print will therefore be judged not only on headline beats or misses but also on how the company frames continuity in program delivery and profitability trajectories.
Another driver is the cadence of definizing and ramping multi-year awards within Missile Solutions. The quarter’s progress in capacity build-outs and early production for propulsion programs will shape expectations for subsequent quarters. Given consensus already embeds 10.81% year-over-year EBIT growth and 7.14% revenue growth, the path to upside rests on incremental margin improvement, timely deliveries, and any indication that cost efficiencies from manufacturing collaborations are beginning to surface in the P&L. Each of these elements can provide the incremental confidence needed for the market to solidify a bullish stance on the shares into year-end.
Analyst Opinions
Across the period from January 1, 2026 to October 22, 2026, the prevailing sell-side stance is bullish. By one widely followed tally, 13 of 19 brokerages hold Buy-equivalent ratings compared with 6 Holds, implying roughly a 68% to 32% split in favor of bullish views. The majority emphasizes improving execution, visibility from multi-year awards, and the potential for earnings compounding through cost discipline and conversion of large program backlogs.
Several high-profile institutions articulate the bullish case. Goldman Sachs maintains a Buy rating with a 405.00 US dollars price target, citing a constructive setup for double-digit EPS growth as booked awards translate into revenue and margins stabilize near recent levels. Bernstein also keeps a Buy rating and a 405.00 US dollars target, framing the company’s trajectory as one of operational normalization with the prospect of incremental margin gains as production programs move down the cost curve. Guggenheim initiates at Buy with a 365.00 US dollars target, arguing that multi-year propulsion and advanced systems awards provide durable visibility and validate the near-term earnings growth embedded in consensus.
Susquehanna remains on the Buy side with a 350.00 US dollars target, highlighting the earnings algorithm implied by the current quarter’s projections: revenue growth of around 7.14%, EBIT growth of roughly 10.81%, and adjusted EPS growth of approximately 14.28% year over year. That stack reflects a mix of steady program execution and operating leverage from scaling production lines, particularly in propulsion and related munitions work. Their constructive stance aligns with the market’s expectation that consistent delivery against funded awards, combined with cost discipline, can sustain above-trend EPS growth through the next several quarters.
Baird’s updated target of 350.00 US dollars aligns with the bullish cluster that emphasizes stabilization in margins and the potential for incremental efficiency gains from ongoing manufacturing partnerships across munitions and advanced systems. While price targets have moderated in select cases as investors recalibrate for conservative margin ramps, the core bullish thesis remains intact: the quarter’s consensus estimates appear achievable without assuming aggressive margin expansion, and upside exists if cost and schedule performance continue to trend favorably.
In synthesizing the majority perspective for the upcoming report, the bullish camp expects: revenue near 5.91 billion US dollars, adjusted EPS around 2.94, and EBIT near 929.50 million US dollars, all with mid-to-high single-digit or better year-over-year growth. This view leans on tangible, multi-year awards that anchor forward revenue conversion, alongside early signals that manufacturing and supply chain initiatives can support margin stability. The leadership transition is being watched, yet the predominant view is that operational continuity and program delivery are the primary determinants of near-term share performance. As long as the company executes to plan and provides credible commentary on milestone timing, backlog conversion, and cost discipline, the bullish side expects continued progress in earnings and a constructive trajectory for the shares into subsequent quarters.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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